Operational leasing and financial leasing

You would like to lease a company car. In this case, you have the choice between operational leasing and financial leasing. Please note, these two formulas are only intended for companies, self-employed people or professionals, never for individuals. A comparison.

Financial leasing

With financial leasing, you rent the car for a specific period from the leasing company. The contract does not include operational monitoring – think about insurance, maintenance, possible repairs and tires. So you will have to take care of it. At the end of the contract, a purchase option is provided: it gives you the right (but not the obligation) to repurchase the car at a given residual value. So, during the duration of the contract, you are not the owner of the car, you only become one when the residual value is paid. In this case, you will have to register the car again and pay a new registration tax.

Note also that financial leasing is not limited to car financing. In fact, the financial leasing contract is defined as a rental contract for movable or immovable property concluded between a bank and its client and which is accompanied at the end of the monthly repayments by a purchase option, which However, this is not obligatory. We think, for example, of an SME which used financial leasing to ensure the financing of its computers, its printer, etc.

Operational leasing

In the case of operational leasing, you benefit, alongside the rental of the car, from a whole series of additional services: interest, taxes, maintenance costs, possible repairs, insurance, depreciation, etc. The leasing company therefore assumes all management and administration of the car. It is no longer necessary to keep garage invoices and gas station tickets, making it easier to deduct automobile costs from tax.

Operational leasing is therefore an “all-in” formula: fuel, technical assistance and a replacement car are often included in the contract. Unpleasant surprises, such as unexpected repairs, are in principle excluded: you know in advance the exact periodic amounts to be paid. In short: risk and cost control is central.

In terms of operational leasing, you receive an invoice each month which lists all the services included in your leasing. You do not own the car and you cannot become one. At the end of the contract, you must change cars.

Joint bank account: good or bad choice?

bank

Like all other bank accounts, the joint account or collective account has advantages and disadvantages that it is important to know before opening it. Mastering the operating principle of such an account makes it possible to measure the risks it generates and to better prevent possible disappointments.

How does a joint bank account work?

The operation of the joint bank account depends on the validation of the signatures of the holders. If the name of the account is “Mr. If, on the contrary, the account is in the name of “Mr. X and Mrs. Y,” the agreement of both signatories is necessary to carry out an operation.

Advantages and disadvantages of this account

Advantages and disadvantages of this account For a couple, friends or roommates, combining resources in an account allows them to cover common expenses. This simplifies income management and makes it possible to consider joint projects using the funds collected.

However, the holders of the joint account are responsible for the transactions carried out on it, whether their signature is joint or separate. If the account has a debit balance, the bank will require the holders to fund it, without trying to determine who contracted this debt. Likewise, holders may be banned from banking in the event of non-payment.

Why is this account interesting?

Due to the pooling of risks, the collective account requires real trust between the holders, particularly in the case of separate signatures. Otherwise, it is better to open a joint account with joint signatures. You can therefore refuse to endorse transactions that could put the account at risk.

One in two unemployed people are not actively looking for a job

unemployed loan

This is the very latest result of the Onem report and it is the lowest figure (53.2%) with the year 2009 (53%) since the establishment of controls on the availability of the unemployed

And you what do you think ?

Exchange your opinions on our financial, economic, political and tax news blog

These are the results of the analysis of the efforts made by the unemployed to search for a job.

The number of sanctions imposed in 2013 against the unemployed stood at 17,140, an increase of 10.4% compared to 2012. These sanctions do not result in as many exclusions from unemployment…

In 2013, there were 6,727 temporary suspensions of unemployment benefits:

  • 27% in Flanders
  • 56% in Wallonia
  • 17% in Brussels

4,815 reductions in benefits for 4 months for cohabitants with limited income, heads of household or single people:

  • 37% in Flanders
  • 38% in Wallonia
  • 25% in Brussels

2,301 reduced allowances for 6 months followed by exclusion:

  • 36% in Flanders
  • 41% in Wallonia
  • 16% in Brussels

Our advice for finding a job

You may not know it yet, but our website and our blog, run by experienced local business professionals, contains a wealth of economic and financial information to help you in your life projects.

Are you looking for a job?

Read our advice article.

Our hand is that we are going to really surprise you and be able to help you…go be curious!

The Personal Credit Center

The Central Personal Credit Center is a state body which is part of the National Bank of Belgium. As soon as you take out a consumer loan or a mortgage loan, you will be concerned by the role of the Central Personal Credit Office. Let’s take stock of this institution that everyone talks about but that very few really know in practice.

What is the Personal Credit Center?

The Centrale is, above all, a tool to combat over-indebtedness. It records all consumer credits and all mortgage loans which are signed by individuals as well as all payment defaults (better known as “filing”). These are loans only taken out for private purposes and therefore it does not list contracts for commercial or professional purposes. It must be consulted by credit professionals before granting a loan.

So, in practice, lenders must inform the Centrale of your identity and the credit contract as soon as it is signed. Likewise, in the event of non-payment and termination of credit, lenders must inform the Centrale which then carries out the filing.

The Missions of the Personal Credit Center

The Centrale’s essential mission is to record and make available to lenders information aimed at strengthening the means of prevention in the fight against over-indebtedness of private individuals and individuals. The recorded data is communicated by banks, insurance companies and financing companies.

What information is communicated?

The information communicated concerns all consumer credit contracts and mortgage loans concluded by persons for private purposes as well as all payment defaults.

Last recorded data

You will find the latest credit data recorded at the Personal Credit Center.

The Centrale therefore contains data on 6,236,412 people and 11,437,787 credit contracts, a slight increase compared to 2011. In 2012, 1,424,406 new credit contracts were registered, a decrease of two thirds compared to 2011. The origin of this decline lies in credit openings, of which 522,277 contracts were recorded in 2012 compared to 3.2 million the previous year. The sharp increase in 2011 was the consequence of the obligation to communicate overdraft facilities on current accounts.

In 2012, the Centrale also recorded 20% fewer new mortgage loans. This trend can undoubtedly be explained by the elimination, at the end of 2011, of state aid in favor of energy-saving investments. But with 321,261 new contracts, the 2012 level is nevertheless almost 20% above the annual average over the period 2007-2009.

The number of new loans and installment sales is down by 9% and 25% respectively. The economic crisis certainly contributes to this decrease, but for installment sales, it marks a strengthening of the annual trend that began in 2006.

Final word on the registration

After two unpaid installments, the lending organization is obliged to cancel your credit contract and proceed with your filing. Once registered, you will remain registered until you have closed the credit contract and even once your credit has been repaid, you will remain registered for 12 months. There is therefore no question of obtaining a credit during this period unless you are the owner of a property free of charge (Owner’s credit).

The consequences of dismissal on your credit contract

credit contract

In this turbulent period on the job market where unfortunately many citizens are losing their jobs following a company restructuring or a relocation of commercial activity, many of our worried customers are asking us about this question. thorny consequences of a job loss on their current credit contract. We will take stock of this issue with you.

Current events require, here is a subject that interests our Internet users. Unfortunately, the sovereign debt crisis which has taken hold throughout Europe has convinced a number of governments to adopt austerity measures intended to contain public deficits within the limits set by Europe.

The consequences were not long in coming since Europe entered into recession, mainly following a very significant slowdown in household consumption. The automobile industry and the steel industry, to name but a few, have disastrous results which are forcing the managers concerned to find solutions. Unfortunately, it is often on the employment front that the fallout is heaviest. The year 2012 saw records in Belgium fall for bankruptcy declarations and job losses. In France, every day sees nearly…1,500 jobs lost.

Unfortunately, it is the middle classes who are affected: workers, executives and to a lesser extent senior executives. This is unfortunate because it is this category of people who borrow and who could be faced with credit risk.

What about a layoff on your current credit? This brief analysis applies to both the installment loan and the mortgage loan.

The principle

The dismissal has no impact on your credit contract. In short, you must continue to pay except for the risk of having your credit denounced. If you borrowed together, the entire credit falls on the creditworthy co-borrower. The latter cannot absolutely claim to have his charge reduced by half.

The parades

They are not numerous. Either you have borrowed with a co-borrower who will be able to assume the burden of the credit, until you can find a new source of income or you are the owner of a building free of charges. In this case, it is possible to grant you a new loan (mortgage) which will repay the current one by taking our pledges on your property.

Job loss insurance

This insurance has a bright future unfortunately. If you feel that your professional activity is threatened, it will even become essential to take out this type of insurance.

Characteristics and conditions of job loss insurance.

It is entirely possible – and even recommended – to take out this type of insurance when entering into your credit contract. This insurance can accompany both an installment loan and a mortgage loan.

Terms ?

  • Be at least 21 years old;
  • Waiting period of 6 months after signing the credit contract;
  • Be bound by a permanent contract;
  • Have completed your one month trial period 3 months;
  • Be able to claim unemployment benefits.

Blanket ?

Coverage is not unlimited. Some insurance policies guarantee you up to 12 months of reimbursement of monthly payments after your dismissal. Of course, based on the replacement income that you can earn, a breakdown will be made regarding insurance coverage. You will need to discuss this with your insurer and carefully read your insurance contract to assess its exact scope.

Compare several mortgage loan offers?

mortgage

Are you about to purchase real estate? Whether it is a purchase to establish the family’s main home or a real estate investment, you are making a good decision because real estate remains a sure value which is constantly evolving upwards and in any case which experienced only very rare temporary depreciations. In summary, by investing in “the brick”, you take very little risk and your capital grows year after year. The real estate market is full of players and parameters. What should you pay attention to when comparing different mortgage loan offers on the market? Here is the subject of our tip of the day.

Compare like with like!

Are you going to shop around at banks or credit brokers? This is quite normal. First of all, you need to compare like with like. Compare for a mortgage loan for the same amount of money and for the same duration.

Tip: lenders and credit intermediaries are required to provide you with a SECCI form before signing your mortgage loan contract containing the “standardized European consumer credit information”. This form contains all the information accurately and completely on the credit considered and will allow you to more easily compare the different offers.

Compare your credit intermediaries

Of course, you are looking for the best price on the market. But that’s not all. Also take into account the quality of the advice and the responsiveness of your bank or your credit intermediary. More and more solutions are available online and no longer guarantee you the service of an available broker and good advice. Many things can happen during the life of your mortgage and you will always need to have an advisor available. Don’t skimp on it!

What should you compare when it comes to a mortgage?

Financial conditions

First compare the interest rate and term of your mortgage. Tip: we provide you with credit simulators and fees for credit acts and notarial fees on our website.

Also compare the costs

You must also pay attention to application fees, notary fees and insurance costs. So, you need to compare the total cost of financing.

Tip: there is the possibility of obtaining a reduction in registration fees of 6% when acquiring modest real estate. More information on the modest housing reduction.

Other important elements

Don’t forget to pay attention to the flexibility of your credit, that is to say the possibilities of adjusting it or suspending the monthly loan payments.

Likewise, check the fees in the event of partial or total early repayment. You always have the right to repay your mortgage loan early, but the contract may have included significant fees. Be careful !

Example: Imagine you inherit a large sum of money. You may be tempted to repay your credit early. It would be an unpleasant surprise to find that to do this, you would have to pay compensation of a few percent.

Fixed rate or variable rate?

This question is unavoidable and the answer depends on the situation. At the time of writing this advice post, we recommend the fixed rate because fixed rates are still relatively low and they are about to gradually rise again.

Outstanding balance insurance?

Insurance represents a significant incidental cost. In principle, you are not obliged to take out outstanding balance insurance. You must discuss this with your bank or credit intermediary. In practice and unless they offer significant guarantees, few banks will agree to grant you a mortgage loan without insurance.

In your search for comparison, carefully check the guarantees that are offered in your insurance.

What is a credit broker?

credit broker—”Hello, am I at the Crédit Populaire bank?”
—”Certainly sir, you have correctly formed the number of Crédit Populaire Européen, how can we be useful to you?” Find out what a credit broker is.

To begin with, everything is fine! Except that Crédit Populaire Européen is not a bank but a credit and insurance intermediary. Then, a credit intermediary is also called a credit broker.

Banks, credit institutions, credit companies, credit intermediaries, brokers: the public then gives the impression of confusing these notions which therefore cover different services.

So let’s take stock together to help you understand what’s behind the “CPE” door that you just pushed! Today we say “It’s not rocket science!”

Credit institutions / credit companies

Consumer credit can be offered by bank lenders – i.e. banks and credit institutions – and non-bank lenders – i.e. credit companies.

All these lenders must have approval from the Federal Public Service Economy for the granting of consumer credit.

Consumer credits can be distributed by bank agencies as well as by credit intermediaries, that is to say brokers and credit agents, points of sale (stores: for example in household appliances, furniture, garages etc.) and remotely (for example via the internet).

Credit institutions

Credit institutions (savings banks) are defined by legislation as companies whose activity consists of:

  • receive deposits of money or other repayable funds from the public and
  • to grant credits for their own account;

Credit institutions are banks, the two terms are synonymous.

Credit companies

Credit companies are lenders which are not credit institutions and which have approval from the FPS Economy to grant credit.

Differences between a bank (credit institution) and credit company

A bank offers you a whole series of financial services (current account, savings account, home banking, investment advice, tax or wealth advice, etc.) while a credit company is a company whose sole corporate purpose is to grant credits on its own account (which of course a bank also does!).

Credit intermediary / credit broker

A broker or credit intermediary – the two terms are synonymous – is neither a bank nor a credit company.

The broker or credit intermediary does not grant credit. It simply connects a customer who is seeking credit with a bank or credit company which will grant them credit.

It is therefore a…credit intermediary!

The credit broker is now responsible for finding your credit at the best rate. He will work with you to find solutions adapted to your projects under the best conditions. Simulate your credit online.

What are the benefits of contacting an intermediary rather than a bank or credit company?

There are several interests:

  1. The credit intermediary helps you prepare your file and submits it for you: he is your intermediary, your representative. He puts his know-how and his relationships at your disposal;
  2. The credit intermediary brings several banks or credit companies into competition and therefore. It offers you the best offer on the market for your request and taking into account your specific risk profile.
  3. The credit intermediary is in contact with the public: he can get you a decision in 48 hours, which no bank or credit companies can offer you;
  4. The credit intermediary advises you in advance. It offers you the product which will be likely to be accepted by a bank or a credit company. It is our duty to advise.
  5. In the event of difficulties in the course of your repayments, the broker is much more responsive and pragmatic than a bank or credit company. He defends your case like your insurance broker would in the event of a house fire. The broker is truly a close partner.

Crédit Populaire Européen Luxembourg

Crédit Populaire Européen, established since 1996 and specializing in personal and mortgage credit, is proud of its established presence in Luxembourg. Therefore, our Luxembourg customers are invited to visit us in our agencies in Esch-sur-Alzette or Mersch.

In addition, we offer a complete range of financial products, including personal loans, mortgage loans, loan consolidations and redemptions, homeowner loans, energy loans, etc.
Also, for more details about our services. We encourage you to discover our complete catalog and our online offers.

Furthermore, with its experience in the Belgian and Luxembourg markets, our family business benefits from the recognition of its financial partners. This privileged position allows us to offer the best conditions on the market. Finally, our team of senior collaborators, competent in French, Dutch, English, Portuguese and Spanish, is ready to manage your files with expertise.

Crédit Populaire Européen Luxembourg

👉🏻 We can welcome you or our colleagues can also come if you wish:

  • In Luxembourg: Mersch and Esch-sur-Alzette.
  • In Belgium: in Mons, Tournai, Charleroi, Brussels, Arlon and Sprimont.

Our Agencies:

Crédit Populaire Européen specializes in insurance brokerage and real estate, offering properties for rental. And for sale in Mons, Brussels, and therefore in the Province of Luxembourg. For more details, please contact us.

Your installment loan and the grant

Can we establish a link between the contraction in the number of installment loans granted and the financial health of national and European stock markets? A quick update on a burning current issue.

A worrying observation

The financial crisis that we are experiencing in Europe began in 2008 and was directly exported from the subprime crisis in the United States. Subsequently, awareness of the abysmal evolution of sovereign debts in Europe considerably contributed to tarnishing a financial activity that had been flirting with recession for months.

A consequence quickly appeared: the financial health of the banks deteriorated and so did credit activity, with the corollary being a much less generous loan and credit policy.

The causes of the financial crisis

The severe and lasting crisis which is raging and undermining the financial health of Europe has essentially three origins:

  1. The export of the subprime crisis to the United States.
    In short, US banks granted mortgage loans to indebted households and in return speculated on the upward trend in the market value of real estate. Unfortunately, this disconcertingly naive scheme collapsed like a house of cards as soon as the real estate market turned around, producing the opposite desired effect;
  2. Financial speculation by European banks buying sovereign debt from seriously indebted southern European countries.
     The banks helped to burden the southern states by granting them large loans. The other side of the coin is that certain countries such as Greece, Ireland and Portugal have made partial defaults and Europe has had to agree to debt write-downs with the corollary of bank failures;
  3. Endemic bad governance in states in Europe, across the Atlantic and even in Asia – with Japan in the lead.
    States spend much more than they collect in tax revenue. The well-established welfare state model in Europe is shaking on its foundations and social benefits must be reduced.

Your money and the stock market

Between 2008 and 2011, the health of global stock markets was catastrophic. The returns on investment have been largely negative. Both stocks and corporate bonds suffered severely. A golden rule for small investors: only invest in what you don’t need.

And now what am I going to do?

It appears that the sovereign debt crisis in Europe is now under control. Banking activity is slowly picking up and stock market assets are slowly but surely moving upwards. Now is the time to invest for the most daring.

Banking stocks, sidelined for so long, are gradually regaining color. Credit activity will undoubtedly still be very precarious in 2013 but 2014 should present itself as the new dawn of credit activity.

Take out a loan as a company director

take out a loan

In Belgium, most companies are SMEs, that is to say Small and Medium Enterprises. When they suffer from cash flow difficulties, it is not uncommon for a request to be granted credit, over a short and specific period, to compensate for the temporary lack of liquidity. Unfortunately, many banks and brokers refuse to take out such a loan.

Focus on this subject.

Can an SME take out a loan?

An SME has the legal right to obtain a loan. Nothing prevents him from taking the necessary steps. However, few banking or credit organizations agree to grant a loan to this type of company. The financial situation of the SME is often in question. Indeed, the variation in the results of commercial activity as well as the instability of the firm’s income prevent the companies allocating the loans from having an overall idea of the state of the SME’s work.

What are the difficulties specific to SMEs?

Very often, the activity of an SME works wonderfully. On the other hand, it is not uncommon for it to temporarily lack liquidity. The one month deadline is therefore exceeded for payment of invoices and sometimes extends up to three months. This phenomenon then leads to a series of difficulties. Thus, the company finds itself obliged to make a loan request in order to remedy the various problems encountered.

How to resolve these difficulties?

Knowing that it is impossible to take out a loan as a legal entity (that is to say, as a company), another solution is then possible: request the allocation of the loan as a natural person. From then on, the loan is made by the managers or administrators of the company. However, in the majority of cases these are not employees but shareholders and also self-employed people. Consequently, some difficulties will hamper the allocation of credit.

What about credit for the self-employed?

Just like for an SME, an independent person is legally authorized to obtain a loan. However, taking out a loan is complicated. Indeed, the instability of their income as well as the variation in their financial situation cause numerous difficulties for this person such as the non-visibility of their work status by the credit broker. In addition, the deadline for payment of invoices also varies between one and three months.

At CPE, it is however possible to take out a loan as an independent person because our staff includes a specialist in this field. However, only mortgage loans are granted to the self-employed thanks to the guarantee provided by the mortgage. To do this, the self-employed person is obliged to be the owner of property free of any charge or to be a co-debtor with a person owning this type of property.